06.01.202600:35:23UTC+00Australian Shares Edge Lower

The S&P/ASX 200 index experienced a slight decline of 0.1% to close at 8,718 on Tuesday, following a stagnant session the previous day. Investor sentiment was marked by caution ahead of the anticipated release of November's Consumer Price Index (CPI) on Wednesday. Inflation is projected to decrease marginally to 3.7%, down from October's 3.8%. Despite this expected shift, a survey featured in the Australian Financial Review suggests that the Reserve Bank of Australia (RBA) may continue tightening monetary policy. The survey indicates that inflation may persist at elevated levels over the coming year, leading to expectations of at least two further rate hikes. The financial sector exerted downward pressure on the index, as key players like the Commonwealth Bank of Australia dropped 1.1%, Westpac fell 0.5%, National Australia Bank decreased by 0.7%, and ANZ Group Holdings declined 0.8%. Conversely, BlueScope Steel saw a remarkable surge of 20.5%, reaching a peak not seen in over 17 years, after announcing it had received a takeover bid valued at $30.00 per share from a consortium spearheaded by SGH Ltd and U.S.-based Steel Dynamics. Meanwhile, major mining companies such as BHP Group saw a rise of 1.1%, and Rio Tinto grew by 1.9%, buoyed by record-high copper prices.